In March 2025, Canadian regulators and law enforcement agencies joined forces for Operation Avalanche, a coordinated effort to fight back against crypto scams. It was a campaign not only about catching the criminals after they have struck but also about intervening early, interrupting the fraud as it progressed, and going directly to the individuals who are most likely to be affected.
It was about a developing scam called approval phishing, which involves deceiving victims to open the door to fraudsters without being aware of it by giving them access to their crypto wallets. It is usually too late when one notices the issue. Operation Avalanche was meant to alter that by alerting the Canadians on the spot, providing advice, and demonstrating that the authorities are ready to take action before it is too late.
Approval phishing is a clever but dangerous trick. Scammers convince people to approve a transaction that quietly gives them ongoing access to their crypto wallets. Once that permission is granted, the fraudsters can pull tokens out at any time without asking again.
This technique is often tied to larger schemes such as so-called “pig butchering” scams, where victims are gradually persuaded to invest more money over weeks or months before being drained of their savings.
Operation Avalanche, carried out on March 11–12, 2025, made a real difference in Canada’s fight against cryptocurrency fraud.
The operation identified 89 Canadians whose Ethereum wallets had been targeted through approval phishing scams. Through these scams, the fraudsters have been able to steal about USD 4.3 million. The government contacted the victims themselves, calling or writing emails to inform them about the dangers involved and provide them with some real-life information on wallet securing to demonstrate that it cares about further losses (Source: BCSC).
The operation brought together a wide range of agencies. Provincial regulators such as the BCSC, OSC, ASC, and AMF joined forces with the RCMP, Delta Police, Vancouver Police, and even the U.S. Secret Service. On the crypto side, platforms like Netcoins, NDAX, Coinbase Canada, Wealthsimple, Shakepay, Kraken, and Coinsquare helped by sharing information to pinpoint affected wallets (BCSC). This cooperation made the operation much more effective.
Chainalysis, a blockchain analytics company, contributed to the tracing of stolen transactions in Ethereum. Their work enabled the authorities to detect stolen wallets, trace criminal behaviour, and halt existing scams and offers some insightful information to follow future investigations (Source: Chainalysis).
The Operation Avalanche established a significant precedent of being proactive in combating crypto fraud. Canadian officials demonstrated that a decentralized intervention, including contacting the victims, regulatory control, policing, and technical skills, can reduce financial losses and secure investors. These measures would likely remain the same as fraud tactics are advanced.
Operation Avalanche shows that Canadian authorities are moving beyond just investigating scams after the fact. By stepping in early and warning people directly, they’re aiming to reduce losses, disrupt fraud networks, and keep more Canadians safe in the fast-changing world of crypto.